Legislation

In most countries, laws governing the use of forced labor in the production of imported products have been nonexistent or woefully inadequate. Nonetheless, recent legislative developments are beginning to provide promising pathways for tackling forced labor in global supply chains.

The Tariff Act has prohibited the importation of goods made with forced labor into the United States since 1930; however, it had only very limited impact until 2016 when the “consumptive demand” clause, which had allowed the entry of goods made by forced labor if they could not be sufficiently provided domestically, was removed. Since then, US Customs and Border Protection has issued hundreds of Withhold Release Orders (WROs) following review of forced labor allegations it has received. One of the most substantial WROs on forced labor post-2016, against Hetian Taida Apparel, was substantially based on the WRC’s investigation of the factory. As importers, brands are also exposed to potential legal enforcement through the Tariff Act.

In December 2021, with the passage of the Uyghur Forced Labor Prevention Act (UFLPA), which went into effect in June 2022, the US has put into place a regional import ban on products from the Uyghur Region and from facilities receiving forcibly transferred workers from the region, due to the high risk of forced labor. The UFLPA is one of the only laws enacted by Congress in decades that holds brands and retailers accountable for what happens to workers overseas who create their products.

The European Union’s Forced Labour Regulation went into force in December 2024; the ban will begin to apply in December 2027. This EU law mandates that EU member states prohibit the import of any product that is wholly or partially made using forced labor; conduct due diligence on supply chains to identify potential forced labor risks (which companies will also need to align with requirements under other laws on mandatory human rights and environmental due diligence within the EU); and take steps to investigate and remove products tainted with forced labor from circulation if found within their jurisdictions.